As the US Economy Collapses, What Will Happen and How to Prepare

By Christopher R Rice (from around the web), TheUnderground

Future historians are likely to identify the Bush administration’s rash invasion of Iraq as the start of America’s downfall.

The causes of a crash like this are many and varied. While most media sources tend to report on things in terms of a simplistic dichotomy (this or that), reality tends to be more complex

The World Economic Forum ranked the United States at a mediocre 52nd among 139 nations in the quality of its university math and science instruction in 2010.

I have previously warned my readers that the damage caused by this trade war would get progressively worse the longer that it lasts.  

Many companies have been trying to ride it out, but eventually the money runs out and layoffs start happening… 

Anyone who thought that this trade war would not have very serious consequences was just fooling themselves.  According to one source, tariffs paid by U.S. businesses are up 45 percent compared to a year ago.

Most people simply don’t understand the gravity of the situation.  Nothing was ever fixed after the last financial crisis.  Instead, we went on the greatest debt binge that humanity has ever seen, and central banks started creating trillions of dollars out of thin air and recklessly injected that hot money into the financial system.

Flooding the market with trillions of new fiat currency units and pushing interest rates to zero for the greater part of a decade made a new crisis inevitable. So now we are in the terminal phase of the largest financial bubble in human history, and there is no easy way out.

And that is why our leaders have been piling on the debt and global central banks have been recklessly creating money.

But it is inevitable that our bad choices would catch up with us, and the pain that we are going to experience is going to be absolutely off the charts.

This crash will be unlike anything the world has ever seen. Put simply, there has never been this much debt in the system (hundreds of trillions worldwide), so there will be no historical precedence for the crash. Under Trump, fiscal deficits will push up interest rates and the dollar even further, and hurt the economy in the long term.

Trump’s fiscal stimulus will fuel inflation more than it does growth. Inflation will then force the Federal Reserve to hike up interest rates sooner and faster than it otherwise would have done, which will drive up long-term interest rates and the value of the dollar still more.

This undesirable policy mix of excessively loose fiscal policy and tight monetary policy will tighten financial conditions, hurting blue-collar workers’ incomes and employment prospects.

It is worth remembering how America’s 1930 Smoot-Hawley Tariff Act triggered global trade wars that exacerbated the Great Depression.

The Nobel laureate economist Edmund S. Phelps has described Trump’s direct interference in the corporate sector as reminiscent of corporatist Nazi Germany and Fascist Italy.

To be sure, expectations of stimulus, lower taxes, and deregulation did boost the economy and the market’s performance in the short term. But, as the vacillation in financial markets indicates, the president’s inconsistent, erratic, and destructive policies have taken their toll on domestic and global economic growth in the long run.

The stock markets worst enemy is unpredictability and Trump is considered to be very unpredictable. Can you feel it? How greed is now giving way to fear?

Already, in anticipation of higher short-term rates, investors have driven longer-term interest rates higher. Yields on 10-year Treasury notes, for instance, reached as high as 2.86% on Monday, up from 2.40% at the start of the year and 2.03% in September.

The IMF’s latest Financial Stability Report, is a surprisingly candid discussion on the topic of whether “Rising Medium-Term Vulnerabilities Could Derail the Global Recovery”, which is a politically correct way of saying is the financial system on the verge of crashing.

In recent years, Republicans have been characterized by two principal positions: They like starting wars and don’t like paying for them. George W. Bush initiated two major wars in Iraq and Afghanistan, but adamantly refused to pay for either of them by cutting non-military spending or raising taxes. Indeed, at his behest, Congress actually cut taxes and established a massive new entitlement program, Medicare Part D.

Bush’s actions were unprecedented.

No one ever imagined a US president would actually conspire to attack his own country in order to engineer a political agenda…but one did. And now, by Trumps own inaction, is doing the exact same thing Bush & Cheney did.

The Federal Reserve bank and its manipulation of the currency supply is directly causing this depression.  

Suddenly you reach a point where there is too much money chasing limited resources. According to economic theory, that is when inflation happens.  

One group caused another group to lose their property’s value. In most places, this activity by another name is called “destruction of property” or “theft.” However, currency devaluation is such an esoteric and ingenious form of theft or destruction that it goes unnoticed and unexamined by the majority of the population.  

Whenever central authorities inflate the currency supply it causes the value or purchasing power of the currency to decline. This value is basically lost or “stolen” from the people.

Debt brings consumption from the future into the present, and so it increases short-term economic activity at the expense of long-term financial health.

The only reason why we have even gotten this far is because interest rates have been pushed to historically low levels.  If the average rate of interest on U.S. government debt even returned to the long-term average, we would be paying more than a trillion dollars a year in interest on the national debt and the game would be over.

Even common sense tells you a society completely based on financing there is something seriously wrong. Remember, the markets always surge before the crash. We’ve had the surge, so we know what comes next.

The entire western civilization and their governments are completely broke. What part of this do you not understand?

We can barely afford the debt service now at practically 0%, so just how exactly are people and the governments going to afford two, four or nine times the payments??? 

Our financial system is based on a pyramid of debt, and we have allowed Wall Street to operate like a giant casino.  Our entire economy has essentially become a colossal Ponzi scheme.

A rather minor business cycle slowdown in 1994 was fought with a tidal wave of new credit under Fed chairman Alan Greenspan. That ultimately resulted in the Dot Com Bubble crash of 2000, but the lesson went unlearned.

Instead the Fed concluded that the idea was sound, but was simply not taken far enough. The elite cheerleading squad, captained by Paul Krugman, fully supported a doubling down, and the corporate media unquestioningly went along with the program.

So Greenspan and Bernanke created the Housing Bubble 1.0 by offering the world’s credit markets a price of money so low it couldn’t be refused. Housing was the story, and the Fed supplied the credit.

As predicted by a scant few of us, that all blew up spectacularly in 2008. And no constructive lessons were drawn from that experience, either.

With the political aircover to “save the system” (from the problems that it created!), Bernanke, Yellen, Kuroda and Draghi then led the most aggressive, coordinated central bank bender in all of human history.

Trillions and trillions were printed up, and many times that amount were leveraged and loaned.

Here we all are; stuck together in a world awash with credit. $250 trillion in debt. Four times that amount in unfunded liabilities. And a mind-bogglingly massive amount of tangled financial derivatives roughly the same size as both those debts and liabilities put together.

And the politicians never examine the costs to the public or the benefits to the public of financial reform. That is never part of the discussion.

As the U.S. economy collapses, you will not have access to credit.

Banks will close. Demand will outstrip supply of food, gas and other necessities. When the collapse affects local governments and utilities, then water and electricity will no longer be available. As people panic, they will revert to survival and self-defense modes. 

A U.S. economic collapse will create global panic. Demand for the dollar and U.S. Treasurys will plummet. Interest rates will skyrocket. Investors will rush to other currencies, such as the yuan, euro or even gold. It will create not just inflation, but hyperinflation as the dollar becomes dirt cheap.

Millions of investors, pensioners, insurance customers, and creditors will lose a fortune. (The FDIC currently only holds enough reserve for 40% of the nations current depositors, which is pointless anyway since the dollar will have no value)

You can’t depend on fractional reserve banks to provide access to your funds during a crisis.

As occurred during the last crisis, we are likely to see some traditional financial institutions and even national governments become insolvent. They can print money in an attempt to stop the bleeding, but this inevitably leads to high inflation or hyperinflation.

Very few Americans have any significant savings today. Most live on credit and those with savings have it stored in financial instruments that will be wiped out as the bankers collapse the system to hide the theft they have been involved in for decades. Those who think they will retire with their IRA, pensions or social security will suddenly find them all gone never to return leaving them with no means to care for themselves.

The debt load for the working poor has nearly quadrupled in the past 20 years as a percentage of their income.

It’s this system that dooms every average worker to poverty. And almost guarantees that the rich and the powerful will stay that way.

This was not some “random” event caused by uncontrolled “complexity”.  This was engineered complexity with a devious purpose.  

As the next great depression hits it will be unlike anything we have lived through before. Nothing will be as it seems and only those that have the resources to adapt will come through it whole. Preparation is the key to adapting to future events and those without resources will reap a bitter harvest as they struggle to survive. No announcements will be made, no warnings will be given by the establishment, it will just suddenly happen out of the blue and everyone will say it was unpredictable. But those who prepared will know better. 

Those who trust in government or only live for today will reap what they sow and it will be unpleasant at best if they survive at all. A simple strategy to insure you do not suffer does not have to be expensive or complicated. The best plans are simple and allow you to adapt to the changing times. 

History shows, pundits obsess over what precisely triggers a crash, as if that matters. It doesn’t, because ’cause’ of a bubble’s bursting can be anything

Click for more: How to fight the NWO
Click for more: How to Prepare
Click for more: Survival skills

This is the age old strategy of Centralization; to remove all choices within a system, by force or manipulation, until the masses think they have nothing left but the choices the elites give them. 

For the last twelve months I’ve wrote, warning, what was coming, see articles/links below:

As World Financial Markets Tumble, Brace for the oil, food and financial crash of 2018 (December 5, 2018)

Federal Reserve to raise interest rates quickly (December 5, 2018)

Great Depression of 2018 With 1970s-Style Inflation (December 5, 2018)

US Economy Collapse, What Would Happen and How to Prepare (December 4, 2018)

WARNING: Trump’s hidden agenda PLEASE READ / SHARE (November 29, 2018)

Stock Market Crash: The Dow Has Fallen (November 23, 2018)

2018 Stock market collapse followed by nuclear war (November 12, 2018)

Asian Stocks Lose $5 Trillion This Year With No End in Sight (October 28, 2018)

Asian shares nose dive as Wall St. erases all of 2018 gains (October 24, 2018)

Global Banking Stocks Are Crashing Hard – Just Like They Did In 2008 (October 23, 2018)

Crash that will send Dow down 17,000 points (October 14, 2018)

Prepare for the biggest stock-market selloff in months, Morgan Stanley warns (July 30, 2018)

Debt Bubble(s) and the Digitization Of All Trade (July 14, 2018)

The Stock Market Is Being Torched Again (March 3, 2018)

Guggenheim’s Minerd warns of a possible replay of 1987 stock market crash (February 20, 2018)

How Wall Street’s ‘fear gauge’ is being rigged, according to one whistleblower (February 14, 2018)

EX-CIA GOLDMAN ANALYST: ‘We are in an extraordinarily dangerous time right now’ (February 9, 2018)

How America will collapse (by 2018) (September 27, 2017)

Secret China war plan: trillions in U.S. debt (August 28, 2017)

Wall Street is sending huge warning signs for stocks (July 31, 2018)

The IMF’s Big Currency Reset (July 18, 2017)

The Secret Global Reset Agreement (July 18, 2017)

Economic Collapse and the Digitization Of All Trade (July 17, 2017)

It Is Mathematically Impossible To Pay Off All Of Our Debt (July 7, 2017)

Fake growth, fake money, fake jobs, fake financial stability, fake inflation numbers (July 7, 2018)

Trump will carry Wall Street to the giddy heights of the 1920s before a fantastic crash, economists warn (July 6, 2017)

Bankruptcy guru Edward Altman sees similarities to 2007 in the credit market today (June 25, 2017)

Debt Bubble (June 15, 2017)

JIM ROGERS: The worst crash in our lifetime is coming (June 11, 2017)

WAIT THERE’S MORE:

Beginning of the Greatest Financial Crisis the World Has Ever Seen (December 17, 2018)

Debt Bombs Ticking Across the Globe (December 17, 2018)

Bubble, Meet Pin; It’s Just the Beginning of the Downslide (December 17, 2018)

IMF warns storm clouds are gathering for next financial crisis (December 15, 2018)

Janet Yellen Warns Another Financial Crisis Could Be Brewing (December 12, 2018)

James Rickards says Donald Trump can’t stop the next financial crisis (December 10, 2018)

Bank Stocks And Tech Stocks Crash As The Yield Curve Inverts (December 5, 2018)

Senate passes rollback of banking rules enacted after financial crisis (December 2, 2018)

GE Plunges Again as Analysts Double Down (December 1, 2018)

Apple’s stock tumble makes it unanimous — the FAANG bull market has ended (November 26, 2018)

Can OPEC+ Halt The Oil Price Slide? (November 25, 2018)

Crypto’s Worst Week Since Bubble Burst Puts Loss at $700 Billion (November 24, 2018)

Why The 1929 Stock Market Crash Could Happen In 2018 (November 18, 2018)

Growing Dangers to Stocks From the U.S.-China Trade Conflict (November 14, 2018)

How the China trade war could get very bad, very fast (November 14, 2018)

Crude oil’s collapse sends shock waves across global markets (November 14, 2018)

A ticking time bomb in China has global markets looking really shaky right now (October 27, 2018)

The market is ‘right in the eye of the storm,’ and two charts show dark clouds ahead, says Bank of America analyst (April 2, 2018)

Deleting Facebook’s billions: stock sinks as outrage swells (March 26, 2018)

Retailers are filing for bankruptcy at a staggering rate — and these 19 companies are next to default (March 18, 2018)

Bear Stearns 10 Years Later: Could the Great Financial Crisis Happen Again? (March 14, 2018)

BUT WAIT, THERE’S MORE:

America will fall Into Famine by 2019 (April 2, 2018)

Arrival Of The ‘End Game’ (December 4, 2018)

FAMINE FEAST: Squirrel (November 24, 2018)

Ancient Biblical Prophecies (November 23, 2018)

The Four Horsemen of the Republican Apocalypse (November 23, 2018)

Trump is the Last President! You are the Last Generation! (September 29, 2018)

Feast Of Trumpets 2018 | October Surprise (September 29, 2018)

9/11 Never Forget Never Forgive (September 10, 2018)

Apocalypse Now (March 17, 2018) 

Join the underground railroad. Because if Julian Assange is not safe, no one is safe.

Stocks Are Crashing Hard

By Michael Snyder

Global stocks are falling precipitously once again, and banking stocks are leading the way.  If this reminds you of 2008, it should, because that is precisely what we witnessed back then.  Banking stocks collapsed as fear gripped the marketplace, and ultimately many large global banks had to be bailed out either directly or indirectly by their national governments as they failed one after another.  The health of the banking system is absolutely paramount, because the flow of money is our economic lifeblood.  When the flow of money tightens up during a credit crunch, the consequences can be rapid and dramatic just like we witnessed in 2008.

So let’s keep a very close eye on banking stocks.  Global systemically important bank stocks surged in the aftermath of Trump’s victory in 2016, but now they are absolutely plunging.  They are now down a whopping 27 percent from the peak, and that puts them solidly in bear market territory.

U.S. banking stocks are not officially in bear market territory yet, but they are getting close.  At this point, they are now down 17 percent from the peak…

Monday early afternoon, the US KBW Bank index, which tracks large US banks and serves as a benchmark for the banking sector, is down 2.5% at the moment. It has dropped 17% from its post-Financial Crisis high on January 29.

Of course European banking stocks are doing much worse.  Right now they are down 27 percent from the peak and 23 percent from a year ago.  The following comes from Wolf Richter

But unlike their American brethren, the European banks have remained stuck in the miserable Financial Crisis mire – a financial crisis that in Europe was followed by the Euro Debt Crisis. The Stoxx 600 bank index, which covers major European banks, including our hero Deutsche Bank, has plunged 27% since February 29, 2018, and is down 23% from a year ago

I wish that we didn’t have a global economic system that was so dependent on the “too big to fail” banks, but we do.

If they aren’t healthy, nobody is going to be healthy for long, and it is starting to look and feel a whole lot like 2008.

But unlike 2008, we also have a global trade war to contend with.  The CEO of one yacht company recently told USA Today that tariffs have had a “catastrophic” effect on his company…

Tariffs imposed on goods by the European Union, and the Chinese and American governments on boats, cribs, bourbon, and more have put Wisconsin businesses between a rock and a hard place. The tariffs imposed are already damaging a bloated bubble economy and the hardships are just beginning.

“It’s been catastrophic,” said Rob Parmentier, who is the president and CEO of Marquis-Larson Boat Group, which builds Carver yachts in Pulaski, Wisconsin. According to USA Today, the first “hand grenade,” as Parmentier described it, tossed during the trade wars at him specifically, was a 25 percent tariff the European Union placed this year on boats built in the United States, along with scores of other products including Harley-Davidson motorcycles.

I have previously warned my readers that the damage caused by this trade war would get progressively worse the longer that it lasts.

Many companies have been trying to ride it out, but eventually the money runs out and layoffs start happening

“We’ve had a lot of order cancellations. Canada and Europe have essentially stopped buying boats,” Parmentier said according to USA Today. “We’ve been absorbing some of the additional costs … hoping the tariffs will go away. But we can only do that for so long,” he said. The next step is layoffs.

Anyone who thought that this trade war would not have very serious consequences was just fooling themselves.  According to one source, tariffs paid by U.S. businesses are up 45 percent compared to a year ago…

“For the most recent months available, August 2018, the amount of tariffs paid increased by $1.4 billion — or 45% — as compared to tariffs paid in August 2017. Tariff costs in Michigan tripled to $178 million and more than doubled in multiple states — to $424 million in Texas, $193 million in Illinois, $50 million in Alabama, $29 million in Oklahoma, $23 million in Louisana, and $7.3 million in West Virginia.

These costs strain businesses of all sizes but are particularly painful for small business, manufacturers, and consumers who bear the burden of tariff increases in the form of higher prices,” via the data compiled by The Trade Partnership and released by Tariffs Hurt the Heartland.

And it doesn’t look like this trade war is going to end any time soon.  In fact, one key Chinese official recently made it very clear that China is not afraid of a long trade war…

On Monday in Beijing, Zhang Qingli, a leading member of a Chinese committee tasked with forging alliances with other nations, told a small group of U.S. business leaders, lobbyists and public relations executives that China refuses to be intimidated by an ongoing trade war with the Trump administration.

“China never wants a trade war with anybody, not to mention the U.S., who has been a long term strategic partner, but we also do not fear such a war,” Zhang said through a translator, according to a meeting attendee who declined to be named.

We are entering a time when the economy was likely to slow down anyway, but if stocks continue to crash and global banking woes escalate, that is going to spread fear and panic like wildfire.

And when there is fear and panic in the air, lending tends to really tighten up, and a major credit crunch is just about the last thing that we need right now.

It’s been a really bad October for global markets so far, and more trouble is brewing.  Hold on to your hats, because it looks like it is going to be a bumpy ride ahead.

About the author: Michael Snyder is a nationally syndicated writer, media personality and political activist. He is publisher of The Most Important News and the author of four books including The Beginning Of The End and Living A Life That Really Matters.

How America will collapse

A soft landing for America 40 years from now? Don’t bet on it. The demise of the United States as the global superpower could come far more quickly than anyone imagines. If Washington is dreaming of 2040 or 2050 as the end of the American Century, a more realistic assessment of domestic and global trends suggests that in 2018, it could all be over except for the shouting.

Despite the aura of omnipotence most empires project, a look at their history should remind us that they are fragile organisms. So delicate is their ecology of power that, when things start to go truly bad, empires regularly unravel with unholy speed: just a year for Portugal, two years for the Soviet Union, eight years for France, 11 years for the Ottomans, 17 years for Great Britain, and, in all likelihood, 22 years for the United States, counting from the crucial year 2003.

Future historians are likely to identify the Bush administration’s rash invasion of Iraq as the start of America’s downfall. The bloodshed that marked the end of so many past empires, with cities burning and civilians slaughtered, this twenty-first century imperial collapse has come relatively quietly through the invisible tendrils of economic collapse and cyberwarfare.

As a half-dozen European nations have discovered, imperial decline tends to have a remarkably demoralizing impact on a society, regularly bringing at least a generation of economic privation. As the economy cools, political temperatures rise, often sparking serious domestic unrest.

Available economic, educational, and military data indicate that, when it comes to U.S. global power, negative trends will aggregate rapidly by 2020 and are likely to reach a critical mass no later than 2030. The American Century, proclaimed so triumphantly at the start of World War II, will be tattered and fading by 2025, its eighth decade, and could be history by 2030.

Significantly, in 2008, the U.S. National Intelligence Council admitted for the first time that America’s global power was indeed on a declining trajectory. In one of its periodic futuristic reports, Global Trends 2025, the Council cited “the transfer of global wealth and economic power now under way, roughly from West to East” and “without precedent in modern history,” as the primary factor in the decline of the “United States’ relative strength — even in the military realm.” Like many in Washington, however, the Council’s analysts anticipated a very long, very soft landing for American global preeminence, and harbored the hope that somehow the U.S. would long “retain unique military capabilities… to project military power globally” for decades to come.

2017, according to current plans, the Pentagon will throw a military Hail Mary pass for a dying empire. It will launch a lethal triple canopy of advanced aerospace robotics that represents Washington’s last best hope of retaining global power despite its waning economic influence.

However, China’s global network of communications satellites, backed by the world’s most powerful supercomputers, are also fully operational, providing Beijing with an independent platform for the weaponization of space and a powerful communications system for missile- or cyber-strikes into every quadrant of the globe.

“We are destined to fulfill [historian Paul] Kennedy’s prophecy that we are going to be a great nation that has failed because we lost control of our economy and overextended.”

Ordinary Americans, watching their jobs head overseas, have a more realistic view than President Trump. An opinion poll found that 85 percent of Americans believe the country is now “in a state of decline.” Already, Australia and Turkey, traditional U.S. military allies, are using their American-manufactured weapons for joint air and naval maneuvers with China. Already, America’s closest economic partners are backing away from Washington’s opposition to China’s rigged currency rates.

Viewed historically, the question is not whether the United States will lose its unchallenged global power, but just how precipitous and wrenching the decline will be.

U.S. global power will reach its end in 2018.

Today, three main threats exist to America’s dominant position in the global economy: loss of economic clout thanks to a shrinking share of world trade, the decline of American technological innovation, and the end of the dollar’s privileged status as the global reserve currency.

By 2008, the United States had already fallen to number three in global merchandise exports, with just 11 percent of them compared to 12 percent for China and 16 percent for the European Union. This trend has not reversed itself.

Similarly, American leadership in technological innovation is on the wane. In 2008, the U.S. was still number two behind Japan in worldwide patent applications with 232,000, but China was closing fast at 195,000, thanks to a blistering 400 percent increase since 2000. A harbinger of further decline: in 2009 the U.S. hit rock bottom in ranking among the 40 nations surveyed by the Information Technology & Innovation Foundation when it came to “change” in “global innovation-based competitiveness” during the previous decade. Adding substance to these statistics, China’s Defense Ministry unveiled the world’s fastest supercomputer, the Tianhe-1A, so powerful, said one U.S. expert, that it “blows away the existing No. 1 machine” in America.

Add to this clear evidence that the U.S. education system, that source of future scientists and innovators, has been falling behind its competitors. After leading the world for decades in 25- to 34-year-olds with university degrees, the country sank to 12th place in 2010. The World Economic Forum ranked the United States at a mediocre 52nd among 139 nations in the quality of its university math and science instruction in 2010. Nearly half of all graduate students in the sciences in the U.S. are now foreigners, most of whom will be heading home, not staying here as once would have happened. By 2025, in other words, the United States is likely to face a critical shortage of talented scientists.

Such negative trends are encouraging increasingly sharp criticism of the dollar’s role as the world’s reserve currency. “Other countries are no longer willing to buy into the idea that the U.S. knows best on economic policy,” observed Kenneth S. Rogoff, a former chief economist at the International Monetary Fund. In mid-2009, with the world’s central banks holding an astronomical $4 trillion in U.S. Treasury notes, Russia has insisted that it is time to end “the artificially maintained unipolar system” based on “one formerly strong reserve currency.”

Simultaneously, China’s central bank governor suggested that the future might lie with a global reserve currency “disconnected from individual nations” (that is, the U.S. dollar). Take these as signposts of a world to come, and of a possible attempt, as economist Michael Hudson has argued, “to hasten the bankruptcy of the U.S. financial-military world order.”

Faced with a fading superpower incapable of paying the bills, China, India, Iran, Russia, and other powers, great and regional, provocatively challenge U.S. dominion over the oceans, space, and cyberspace. Meanwhile, amid soaring prices, ever-rising unemployment, and a continuing decline in real wages, domestic divisions widen into violent clashes and divisive debates, often over remarkably irrelevant issues. Riding a political tide of disillusionment and despair, a far-right patriot captures the presidency with thundering rhetoric, demanding respect for American authority and threatening military retaliation or economic reprisal. The world pays next to no attention as the American Century ends in silence.

One casualty of America’s waning economic power has been its lock on global oil supplies. Speeding by America’s gas-guzzling economy in the passing lane, China became the world’s number one energy consumer, a position the U.S. had held for over a century. Energy specialist Michael Klare has argued that this change means China will “set the pace in shaping our global future.”

By 2018, Iran and Russia will control almost half of the world’s natural gas supply, which will potentially give them enormous leverage over energy-starved Europe. Add petroleum reserves to the mix and, as the National Intelligence Council has warned, two countries, Russia and Iran, could “emerge as energy kingpins.”

China has poured countless billions into building a massive trans-Asia pipeline and funding Iran’s exploitation of the worlds largest percent natural gas field at South Pars in the Persian Gulf.

The American economy is paralyzed. With long-fraying alliances at an end and fiscal pressures mounting, U.S. military forces are seen as the only hope and so the populist president will launch world war three or watch a total collapse on Wall Street.

Economic Collapse and the Digitization Of All Trade By Brandon Smith Alt-Market

People need to understand the threat is at their doorstep. It’s not a few years off or a decade away; it’s here now. We are right in the middle of collapse.

The appearance of prosperity means nothing if the fundamentals do not support the optimism. That is to say, a bullish stock market, a high dollar index and a low unemployment percentage mean nothing if such stats are generated by false methods and fiat.

I relate these points because the future I am about to suggest here might sound outlandish to some, because it is so contrary to the “official” accounting of our current financial world.

The stock market, the greatest false indicator of all time, is on the verge of implosion; and the banking elites are positioning themselves to avoid blame for this implosion while the rest of us are being sold on the most elaborate recovery con-game ever conceived.

The globalists have stretched the whole of the world thin.  They have removed almost every pillar of support from the edifice around us, and like a giant game of Jenga, are waiting for the final piece to be removed, causing the teetering structure to crumble.  Once this calamity occurs, they will call it a random act of fate, or a mathematical inevitability of an overly complex system.  They will say that they are not to blame.  That we were in the midst of “recovery”.  That they could not have seen it coming.

Their solution will be predictable.

In our highly interdependent system in the West in which more than 80 percent of the population has been domesticated and is psychologically incapable of self-reliance, it is very likely that a disruption of normal supply chains and services would result in considerable poverty and death. Such a threat would invariably lead frightened and unprepared people to demand increased government controls so that they can return to the level of comfort they have grown accustomed to.

The elites will argue that the banks and bankers are not necessarily to blame. Rather, they will accuse the “system” of being too complex and chaotic, leaving itself open to greed, stupidity and overall unconscious sabotage. The fact that the crisis was engineered from the very beginning will never be mentioned.

The more independent elements within any system, the more chance there is for unpredictable events that lead to supposed disaster. Ostensibly, the solution would be to streamline all systems and remove the free-radicals. That is to say, complete centralization is the answer. What a surprise.

What this means on a micro-level is the activation of bail-ins; that is to say, the legalized confiscation of bank accounts, pension funds, stock holdings, etc. as a method for prolonging a collapse event. We have seen this already to some extent in Europe, and it will happen in the U.S..

While the initial scenario we face in America will be one of stagflation, many necessities and the means to produce those necessities will skyrocket in cost.  There may not be inflation in every sector of the economy because imploding demand could offset some of the effects of falling currency value, but there will be extreme inflation in the areas that hurt common people most.

Digitization Of All Trade 

Despite all the failings and control mechanisms involved in fiat money, there are still worse systems to be had. Last month more than 100 executives from the world’s largest financial institutions met privately at the Times Square office of Nasdaq Inc. to discuss the future of money; more specifically a software apparatus called “Blockchain.” The goal is to implement Blockchain as a medium to fully digitize monetary transactions around the world and in a way that is traceable and foolproof. In other words, the goal is put an end to all transactions involving physical cash.

The establishment of a cashless society would mark the end of all privacy in trade. Even supposedly anti-centralization digital currencies like Bitcoin are hindered by the blockchain feature, which requires the tracking of ALL transactions in order for the currency to function. While methods for anonymity could be argued, the fact of the matter is, digital currency by its very nature is a destroyer of the truly private trade offered by cash and barter. When all trade is tracked, and all savings digitized, whoever owns the keys to the core of the blockchain will have the power to wreak havoc on the life of any participant at will.

To be sure, the “blockchain” that the elites have in mind will never allow for anonymous transactions, because digital currency is not about anonymity or “convenience,” it is about control.

Corrupt government is the tool by which globalists can extort goods and labor from a population as well as exert force to subdue rebellion.  It is highly unlikely that the global reset will result in a collapse of government.  On the contrary, it is usually during economic collapse that governments grow in power to the point of totalitarianism.  There will always be a new currency mechanism or financial structure to replace the old, and the globalists will always have a way to pay off armies and useful idiots to do their bidding.  No one should be counting on the idea that the elites face collapse as we face collapse.  This is naive.  The elites created the collapse; they plan to be ready to use it to their advantage.

Eventually, they will also have to limit or outlaw barter and alternative currencies in order for the digitized economy to work.

This is the age old strategy of Centralization; to remove all choices within a system, by force or manipulation, until the masses think they have nothing left but the choices the elites give them.  It is the bread and butter of elitist institutions like Rand Corporation, and is at the core of the push for globalization.

With almost every major economy on the globe on the verge of collapse and most now desperately inflating, taxing, or outright stealing in order to hide their situation, with multiple tinderbox environments being facilitated in the Pacific with China, North Korea, and Japan, and in the Middle East and Africa with Egypt, Syria, Iran, Pakistan, Yemen, Mali, etc., there is no doubt that we are living in a linchpin-rich era.  It is inevitable that one or more of these explosive tension points will erupt and cause a chain reaction around the planet.  The linchpin and the chain reaction will become the focus of our epoch, rather than the men who made them possible in the first place.

Each major global hot-spot today can easily be linked back to the designs of international corporate and banking interests and the puppet governments they use as messengers.

Governments of America, Russia and China are actually complicit in the formation of a global currency and global government controlled by the IMF.

China in particular has loudly pronounced a need for a global currency system to replace the dollar, and they have suggested that this system be controlled by the IMF:

The world economic crisis shows the “inherent vulnerabilities and systemic risks in the existing international monetary system,” Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund and said it would help “to achieve the objective of safeguarding global economic and financial stability.”

China is NOT anti-establishment or anti-new world order, nor is Russia. American opposition to the NWO is a lie. Period. In fact, the BRICS have argued only for greater inclusion in the IMF system and have no intention of developing a legitimate alternative to “Western” globalization. If you do not understand that the BRICS are part of the NWO, not opposed to it, then you do not understand a thing.

Runaway Hyperinflation

When there is lots of unemployment and lots of unused industrial capacity, central banks keep interest rates low to encourage businesses to borrow and invest. But in the growth stage of an economy, that excess capacity gets used up.

One bank will be allowed to go under and its depositors allowed to be wiped out, then there will be a run on every bank. The entire banking system will be ruined in a couple of hours, with utter chaos, pandemonium, and violence being the rule rather than the exception.

The Federal Reserve bank and its manipulation of the currency supply will directly cause the depression.

Suddenly you reach a point where there is too much money chasing limited resources. According to economic theory, that is when inflation happens.

One group caused another group to lose their property’s value. In most places, this activity by another name is called “destruction of property” or “theft.” However, currency devaluation is such an esoteric and ingenious form of theft or destruction that it goes unnoticed and unexamined by the majority of the population.

Whenever central authorities inflate the currency supply it causes the value or purchasing power of the currency to decline. This value is basically lost or “stolen” from the people.

Many Americans will starve to death. And the American government won’t do anything to help. Buildings, like the economy will be in collapse. Nationwide shortages of food at runaway inflation prices will become the norm.

With an economy in freefall, and food prices skyrocketing, many Americans will eat less and less every day. Children will suffer the most, and severe malnutrition will rise at an alarming rate.

With triple-digit inflation driving up prices, few will be able to afford to pay for even the most basic goods. We will find that U.S. interest rates simply cannot go up enough to stop inflation.

The final stage of this intergenerational theft will be the debasement of our currency. Government will cheat us of our just rewards. Our finances will collapse. The economy will stall. The safety net will unravel. And the most vulnerable will suffer.

It will become simply impossible to finance Social Security and Medicare at current real levels. There is, sorry to say, no legal entitlement to social-insurance transfers, so the government would violate no law by backing out of its promises. That’s how the safety net unravels. There’s no way to continue to pay for it, so it stops being paid for, and so it goes away.

Hyperinflation will largely destroy the economy’s capacity to produce real goods.

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Crash that will send Dow down 17,000 points

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